canneriesk giving in for fear of losing -- neither side can risk giving in for fear of losing in the next election. each side is waiting for the other to blink. >> you have to make it look as though you're not going to blink to get what you want. >> the sticking point today during the negotiations was that income threshold that would see tax increases. the president as we know wanted to see those tax increases for households making more than $250,000 while the speaker wants the increase to start at a million dollars. so they have a long way to go. i'm grace lee, cbs 5. wall street isn't putting faith in washington. the dow lost 158 points today. its five-day losing streak is the longest since july. the nasdaq and s&p 500 also closed down. police pulled over a bmw for speeding. but before the officer could walk up to write the ticket, the driver floored it and tried

to get away. moments later, the bmw slammed into another car a few blocks away from bishop o'dowd high school. cbs 5 reporter da lin tells us an innocent person was killed because of another's recklessness. >> reporter: it started at 98th and bancroft. two chp officers patrolling the streets of oakland pulled over a bmw for speeding. the driver initially stopped but once the officers got out of their car, investigators say the bmw sped away. less than a mile away, the chp says the driver of the silver bmw m6 broadsided a black lincoln on 98th avenue. the impact killed a passenger in the sedan. investigators say the woman was in her early 20s. four other people inside the lincoln suffered from minor to serious injuries. witnesses say the impact could be heard from blocks away. >> a big noise. boom. >> reporter: the chp says after the crash, the bmw's driver and

his passenger ran off but officers captured the driver nearby 34-year-old moore facing two charges, evading police and vehicular manslaughter. >> did not appear to be very much under the influence. he was able to exit his vehicle and flee the scene. so that would show that he is coherent. >> reporter: the surveillance footage shows the passengers trying to get away from police. they are looking for him. in oakland, i'm da lin cbs 5. prosecutors have filed murder charges against two people they say were involved in a high-speed police chase that ended up killing an 11- year-old daly city boy. the l.a. county district attorney says the suspects a man and woman in their early 20s threw a loaded gun out of their car before slamming into a minivan in pasadena on christmas night. 11-year-old kendrick ing was

killed along with his 25-year- old cousin. the family was down in l.a. for christmas and had just left an ice rink. as 2012 closes oakland's murder rate hit 130. three people were killed just last night. a 21-year-old and a 19-year-old were shot to death. and in a separate attack, a man was stabbed. along the coast 14-foot waves have prompted a high surf advisory from point reyes down to san mateo county. the surf is going to be up until late tomorrow night. and there used to be a certain code on the streets. vandals wouldn't touch a mural. but now graffiti vandals have hit murals all over san francisco from north beach to davisidero to the mission. one artist involved with the mission's clarion alley mural project says 2012 has been the worst year since he started 15 years ago. new year's eve is almost here and with that comes the annual warning about drunk driving. elissa harrington is at the chp in the city and it's pretty obvious drunk driving is dangerous but still people do

it so now a new plan to deal with it? >> reporter: well, elizabeth, the usual checkpoints and increased patrols, but a new bill was introduced today to lower driving-related deaths and crackdown on repeat dui offenders. >> with the upcoming new year's holiday, it is more important than ever to be aware of dangers associated with impaired and distracted driving. >> reporter: so law enforcement will be cracking down on drunk drivers. starting tonight through new year's day. police agencies including redwood city will have dui checkpoints. they will estimate they will se 1500 cars. they made hundreds of arrests over christmas. senate bill 55 targets repeat offenders. it would require ignition interlock devices for drivers with more than one dui conviction. >> we have tried increasing fines. we have tried to revoke

licenses to deter those chronic offenders. but we need to do more to save lives. >> reporter: a person would blow into a device before starting his car. if there's alcohol on his breath, it won't start. >> can they go around it, yes. but we're hoping that people would actually be a little more cautious for other people that they may actually kill on the road. >> reporter: these are required in other states including new mexico where recidivism went down by 75%. advice to the public, plan ahead. >> you know there's going to be drinking at the party so either have a designated driver, plan to stay at a friend's house. >> reporter: take public transportation and ring in 2013 safely and responsibly. right now, those ignition interlock devices are optional for repeat offenders but only about 20% have them installed. bill 5 would make them

mandatory for a year. live in san francisco, elissa harrington, cbs 5. muni is 100 years old today and, yes, it is showing its age. old buses, old trains, nothing close to a reliable schedule. muni blames years of underfunding for equipment that breaks down. critics would add that years of generous employee salaries and benefits certainly haven't helped. whatever the problems, muni still carries nearly 700,000 people every day. it is the country's oldest public transit system, too. so to celebrate, everyone can ride muni for free until 5 a.m. tomorrow. not everyone was stingy with their money this holiday season. what's fueling a big boom in luxury car sales. >> and going retro, the new choice the dmv is giving you that will take you back in time. >> showers offshore in the bay area but for the most part just cloudy skies, one case in point there's san jose. but the clouds will drop a little bit of rain in the bay

area tonight. we'll have the whole forecast for you after a break. ,,,,,,

that an indian woman -- who brutally gang raped and then thrown from a moving bus -- died. old woman was move we learned late this afternoon that an indian woman who was gang ripped gang-raped and thrown from a moving bus died. she was moved to a hospital in singapore in critical condition three days after the attack. six men on a new delhi bus raped and brutally assaulted the 23-year-old woman for an hour and also beat a man she was with. the ordeal has galvanized indians in india and here in the bay area. this is a live look at a vigil outside the indian consulate in san francisco. indian women have complained of regular harassment and sexual assault and protestors say it's time the indian government and indian society stopped tolerating violence against women. the horrific -- >> well, other news tonight. former president george h.w. bush said to be improving even though he remains in intensive

care at a hospital in houston. a bush family spokesman says the 88-year-old is alert and in good spirits. the doctors are cautiously optimistic. mr. bush was hospitalized for a bronchitis-like cough more than a month ago. we have asked dr. kim mulvihill to fill us in. what's guarded? >> reporter: that means he is between stable and critical. he will be watched closely. bronchitis can take months to clear but anytime the elderly have bronchitis it could develop into a more complicated lung infection pneumonia especially when the patient is in the icu. >> the difference between bronchitis and pneumonia? >> bronchitis is an inflammation of the large airways that carry air from the mouth to the lungs. pneumonia is an infection of the lung tissue itself. this infection inflames the air sack and they film up with fluid and can cause symptoms

such as a cough with phlegm, fever, chills and trouble breathing. >> and pneumonia is treatable, right? >> absolutely. it usually is. most adults it will take a week or two to clear. but pneumonia can be very severe especially for seniors. it can even be fatal. sometimes even strong antibiotics don't help because the immune system is impaired. roughly 50,000 people die from pneumonia each year. >> he is 88. so tonight exactly what are they looking for? he might get better enough to go home? >> i'm thinking he is going to be in the hospital for a while but you can bet he is going to be watched like a hawk. >> we wish him the best. all right, kim. thanks. california going in reverse? the new option at the dmv that will take you back in time. and some say these laws are a no-brainer. the new protections for car buyers, students and homeowners that are coming in the new year. ,,,,,,,,,,,,

the d-m-v will start selling replica license plate desig from those years. and, the classic fans of the 1950s '6s and '70s have ways to show off. the dmv will show plates for those years. they can be ordered for any type of vehicle not just classic car owners. >> you can have it on your prius, on your new camaro.

you can have it on anything. right? >> the legacy license plates will cost you $50 whether you personalize them or not. they are available for preorder starting january 1. when it comes to cars, have you noticed anything different on the road? cbs 5 reporter joe vazquez shows us luxury is a popular ride. >> latest attributes for jaguar is all-wheel drive. >> reporter: mario of british motors on van ness says this holiday has been a joyride. >> we are very excited about sales. cars are flying off the showroom floors. >> reporter: but what about the possibility of speed bumps that could be caused by an economic stalemate in washington? >> i don't see that our consumers are particularly concerned about the "fiscal cliff." they are just ready to buy. >> reporter: that goes especially for higher end luxury cars or what they call exotic cars like this 2013 bentley continental. according to a recent survey by j.d. power, high-end cars will make

up 16% of retail vehicles sold in december. that's up from 15.3% last month. a year ago, it was 14.8%. so that's a little over 12% increase year to year. >> people are buying because we have lots of new models. and the banks are being very flexible. >> reporter: luxury car sales are traditionally up around the holidays because that's when bosses get their bonuses but dealers are also reporting even heavier increases in other types of cars. sales of so-called light vehicles like passenger cars and suvs are expected to improve by more than 13% year to year according to edmunds. the american car market is on the path towards finishing the year at its highest level since 2007 and is expected to grow more next year barring any detours caused by a "fiscal cliff." joe vazquez cbs 5. >> must be nice. new year new laws and new protections for consumers. cbs 5 consumerwatch reporter julie watts explains how car buyers and homeowners are going

to benefit in 2013. reporter: from for profit education -- >> all my money my future is gone. >> reporter: -- to faulty foreclosures. >> for me they happen pretty quickly. >> reporter: and deceptive car dealers. >> , it's an in-house financing that he have. >> reporter: the consumer problems we resolved this year have run the gamut. but next year, a series of new laws may help prevent them altogether. first up buy here pay here. used car dealer financing for low income drivers. one in four of those drivers ends up with a repossessed car. >> it's leaking oil. >> reporter: borrowers like gentry ramos complain of inflated prices, unfair payment stipulations and sub cars with no warranty. now they are required to have warranty. dealers must show proof of fair market value and they can't make buyers pay each month in person. >> i go to the class every day and today they come to the

class and tell me no school today. >> reporter: she and her classmates lost everything after their for profit school promised a new career and instead delivered debt and a worthless degree. a new law requires for profit colleges to publish among other things their accreditation and student loan default rates, along with actual jobs and salaries earned by former students. >> i'm just a simple homeowner who happened to get sick. >> reporter: and dr. chase was one of many this year whose house was foreclosed while he was in the middle of a loan mod. shortly after he filed paperwork he went to the hospital and the next time he heard from wells fargo. >> they had sold my house the day before. >> reporter: just six months from his first missed payment while he was in the hospital. well, thanks to the new homeowners bill of rights, banks can no longer foreclose while working on a loan mod. they must also offer a single point of contact and show proof of their right to foreclose.

>> you see these things happen you think they're ought to be a law. >> reporter: and now there is. now, two not so welcome changes. sales tax goes up .25% thanks to proposition 30. and state income taxes increase for households making more than $250,000. a year. >> can we go back to some better news? social media they addressed social media, yes? >> reporter: your employer cannot ask or you don't have to give them your social media user names and if you are applying for a new job, they can't ask you for what your user name is for a background check. >> thank you. brian, i went outside about an hour ago and it felt like rain. it was cold and had that kind of feeling about it. >> it's really trying. it's raining over the ocean. we'll show you using hi-def doppler but first let's look at our camera that is heading

towards san francisco, bay bridge if the foreground. pretty shot. on the doppler we're picking up a few cells offshore. you can see a little bit around the peninsula and some over the richmond/san rafael bridge. but aside from that, that was what the forecast was. most of these showers are going to stay offshore through the night, probably as we get toward 11:00 some of the showers will work their way onshore. it's not going to amount to much maybe .25" by the time all is done on midday saturday. right now it's chilly around the bay area today. sfo 49 degrees. winds are pretty much flat dead calm for much of the bay area. it's 45 in santa rosa. as allen and elizabeth mentioned, we still have that high surf advisory posted until 10:00 tomorrow night for the coast. waves could break to a height of about 20 feet. so cloudy and showers tonight, we'll get clearing later on saturday. unsettled new year's eve now. looks like we are going to get for clouds coming in on new year's eve and maybe even the

chance of a sprinkle or two. it wouldn't amount to much. time lapse shows that low pressure that's spinning abeam cape mendocino sending clouds to the bay area. cloudy and showers tonight not a big deal. the numbers from this .25" to half inch. we might get a dusting of snow on some of the bay area peaks at mount diablo in mount hamilton so we could see a little snow at diablo ranch. futurecast showing us what's happening tonight. a little wave of rain comes in not much and then it all clears out by tomorrow. forecast for tonight we are going to be looking for temperatures to plummet into the 40s for the bay area. a few showers around temperatures in the 40s. and if you are heading out of sfo monday looks okay. increasing clouds winds out of the southwest. hub check shows sunshine at los angeles and the overnight lows in the 30s. daytime highs tomorrow will be in the 50s. a little wrinkle in the plan on new year's eve. a few showers and maybe a

little monday and tuesday by the weekend partly cloudy. that's weather. we'll have more news after a break. >> thank you, brian. in new york, hundreds are kissing their bad memories from 2012 good-bye. people are getting rid of everything from bad tax returns to pictures of old lovers in new york's sixth annual good riddance day. a giant shredder along with a rubber mallet and dumpster is set up in times square so people can usher in a fresh start to the new year. and we are approaching that time of year again. the time when lots of us make promises to do better next year. well, exercising not surprising is one of the most popular new year's resolutions. research shows more than 100 million americans say they will change their behavior every january. but only a third succeed. you heard it before. but worth saying again. one of the things that can help is setting realistic goals. >> i need to lose 30 pounds. but i'm going to give myself a year to do that. and i'm going to work, you

know, two pounds a month, which is moderate to average and totally attainable. >> also important to reward accomplishments but not with bad food. keeping a log to keep you honest is said to be another key to success. the just-released declassified documents highlighting the relationship between ronald reagan and british prime minister margaret thatcher. how the woman known as iron lady provided the president with advice on everything from politics to fashion. the international political dispute that's making children suffer. we'll speak with a couple heartbroken over russia's ban on u.s. adoptions. that's tonight on the "cbs evening news." ,,

minister margaret thatcher. but now, as c-b-s reporter y petersen shows us: declassified documents, reld this morning, shed they define the special relationship. press president ronaldpresident ronald reagan and margaret thatcher. now declassified documents released this morning shed new light on their partnership. >> reporter: this was her public line on the falklands. >> just came down terribly on

our side over the falklands and we're very grateful to have been such staunch allies. >> reporter: a tiny british ruled island off south america invaded by argentina in 1982. the british sent troops and warships to retake it. but behind the scenes, there was conflict with mr. reagan urging her to negotiate a truce which she angrily rejected and her asking for his support. you are the only person who will understand. she was not always happy with his responses. describing one of his late night messages regarding the falklands invasion as, so vague i didn't think it was worth reading. but one letter shows the woman the british nicknamed "the iron lady" could have a velvet side adding a ps to the president who was a bit under the weather, warm personal regards and a rapid recovery to full health and strength. the world needs you. yours sincerely, margaret thatcher. >> reporter: the documents

released by britain's national archives also show the president's advisors asking their british counterparts for fashion advice about what mr. reagan should wear for a horseback ride with the queen during a june 1982 visit. the answer, smart but casual. not formal riding attire. the advice the president took. we are going live to chopper 5 for pictures where the coast guard is looking for two people reported to be in the water near the golden gate bridge. now, they get a call from somebody onshore who said the two people who look like swimmers were in trouble. so far no sign of the swimmers. and that water is cold low 50s right now. but we'll have an update as we get new information. we'll be right back. ,, ,,,,,,,,,,

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hope a legendary lawman wil in addition to the coast guard search for those two swimmers we told you about here's what we're working on for the 6:00 news. oakland police hope a legendary lawman will be the answer to violence like this. three murders in the city in just a few hours. but tonight we ask can one man even if it's william bratton really turn things around? >> our kids were going to be whoever they were going to be. >> technology can help couples pick the sex of their child. the consequences and the concerns. those stories and more tonight at 6:00. thanks for watching. the "cbs evening news" with jeff glor is next. >> the latest news and weather are always on cbssf.com. captions by: caption colorado comments@captioncolorado.com

>> glor: tonight, fiscal cliff hanger. >> the hour for immediate action >> here. it is now. >> glor: president obama speaks to the nation after speaking with congressional leaders. reports from major garrett and .ancy cordes. elaine quijano on the family heartbreak after russia's president bans all adoptions to americans. >> we ask president putin, please, can he set an alternate means but don't let me children suffer. >> glor: he met saddam hussein and made it look easy. david martin on the death of general norman schwarzkopf and what the world did not know thout him. and "on the road" with steve hartman as a man tries to save his wife of 56 years. an unusual request that gets a unrprising response. >> got two of them and i only need one. captioning sponsored by cbs